“I know every single parent here today and across this state shares one thing in common and that is this:from the moment our children are born,we worry about them constantly and would do anything to ensure they have a better opportunity than we have.”
Opposition treasury spokesman Daniel Mookhey said Perrottet’s fund looked like “Australia’s most complicated term deposit”.
“Instead of focusing on the crisis in our schools,our hospitals,our rail system and our buses,the Premier is spending more time talking about a policy that he can’t deliver for 20 years,” he said.
Mookhey also warned that much of the benefits earned from the fund could be lost to tax.
“I think lots of families are going to look at this and go,‘We can’t wait 18 years for help when it comes to the cost of living’,” he said.
Perrottet said the future fund would apply to every child in NSW 10 and under from later this year and continue until they turn 18. They will have the choice to spend that cash on a home deposit,or put it towards their education.
He claimed the fund could grow to $28,000 by the time the child turns 18,while additional contributions from family could increase it to nearly $49,000. Those figures are based on an assumption of a 7 per cent return,while the government is guaranteeing families at least a 4 per cent return. The fund is expected to be jointly administered by Treasury,Service NSW,TCorp and a retail fund management partner.
Contributions can be made to the fund after the child turns 18,however the government will not match any further contributions. The children will be able to use the money on a home deposit,HECS debt,textbooks and tools for a trade.
If a child dies,the parents can reassign the money to a sibling or have their own contributions repaid. The government would take its contribution back to consolidated revenue.
Hundreds of party members and dozens of current state MPs attended the launch. Notably absent was federal leader Peter Dutton,as were former premiers Gladys Berejiklian,Mike Baird and Barry O’Farrell.
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Former prime minister John Howard,the only past state or federal Liberal leader at the event,received a standing ovation.
Perrottet strived to depict his 12-year-old Coalition government as future-focused.
After more than a decade of Coalition government,polling indicates NSW Labor is on track to return to powerfor the first time since its 2011 landslide loss.
How the ‘future fund’ would work
Who is eligible?
- Every child in NSW aged 10 and under in 2023 will be eligible for an account.
- From 2024,new accounts will only be created for newborns.
- The funds cannot be accessed until the child turns 18.
- If a family moves interstate or overseas,parents can no longer make contributions,and the government will not add further funds either. However the child can access the funds when they turn 18.
How much money would each child receive?
- Each account will receive an initial $400 contribution provided by the government.
- The child’s parents can contribute up to $1000 per year and the government would match these up to $400 each year.
- For families receiving Commonwealth Family Tax Benefit A,the government will automatically contribute $200 a year without requiring a matched contribution from parents. If the parents contribute $200 each year,the government will match this with an additional $200.
What happens when the child turns 18?
- The child can access the funds.
- Parents can continue contributing to the account but the government stops matching contributions.
- The money can be used for housing (for example,a contribution towards buying a home) or education,including textbooks,private tuition fees,HECs debts,or tools required for getting a qualification.
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